Bitcoin Price Technical Analysis for 31/8/2015 – Another Failed Attempt

In the previous Bitcoin price technical analysis titled Indicators Turning Positive, we discussed that the market participants should remain short on the cryptocurrency. Since then, Bitcoin has touched a high of $235.93 and a low of $226.31 very recently.

This was another failed attempt by the bulls, and a further 3-4 percent cut will complete jeopardize their plans.

bitcoin price chartbitcoin price chart

Image: https://www.tradingview.com/x/XHPwVVph/

Take a look at the latest technical indications provided by the daily BTC-USD price chart.

Bitcoin Chart Structure – There was another reason that made the recent jump unimpressive: Bitcoin failed to head above its previous high of $237.66. However, things will change significantly in favor of the longs if Bitcoin pierces above $235 (marked as the resistance) in quick time.

Moving Averages – This is one very bearish crossover that the market participants must take a look at. The 30-day SMA of $250.0727 has crossed the 200-day SMA of $250.7289 on the downside. When a short-term moving average crosses a long-term moving average on the downside, it indicates a bearish trend in the short-term.

Moving Average Convergence Divergence – Even while the MACD and the Signal Line are stuck in the negative region with respective values of -11.0700 and -13.0232, the Histogram has topped the 0-mark with the latest value coming in at 1.9532.

Momentum –The Momentum reading headed into the positive region but has once again taken a hit following the price decline. The latest value is -6.4900.

Money Flow Index –The MFI has surged to 53.9439, its highest value in over 3 weeks.

Relative Strength Index – The RSI reading of 38.0798 is indicative of the underlying weakness.

Conclusion

The technical picture for Bitcoin is still bearish. Market participants should continue to build short positions on jumps until $235 is breached on a closing basis.

In case, the bulls are unable to protect $215-220, expect a swift decline to sub-$200 levels.

Expect low volatility in the next couple of sessions.

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